AU: Consumer confidence declines further

Australian Consumer Confidence Declines in January

The Westpac–Melbourne Institute Consumer Sentiment Index dropped by 1.7% in January, reaching 92.9 compared to 94.5 in December. As 2024 begins, Australians are feeling increasingly uneasy, with sentiment slipping further into negative territory. Although confidence remains higher than the lowest points seen during the extended cost of living crisis between 2022 and 2024, there is growing anxiety about the outlook for family budgets and the national economy in 2026.

The primary factor behind this shift is a significant change in expectations regarding interest rates. Almost two-thirds of those surveyed now anticipate mortgage rates will...